This manual was prepared to aid in building an effective evaluation structure for government programs and projects throughout the HEW agencies. It is intended to assist evaluators in the development of a strategy -- when to evaluate, who should evaluate, and how to supervise the evaluation; how to allocate resources among different types of evaluation; and how to assess evaluation. The presentation avoids questions of methodology and concentrates on the decisionmaking context for evaluation. Suggested documentation includes an annual evaluation plan and statement of strategic objectives to be prepared by each evaluation office, a statement of the rationale of each evaluation to be prepared by the initiating office, and a critical program summary to be prepared by the chief evaluation officers. (Author)